Securities to Minimize Risk

Securities to Minimize Risk

Systems and Procedures

Credit Origination.

Banks should function inside a sound and well-defined criteria for new credits as well as the expansion of living credits. Credits should be expanded inside the goal markets and lending scheme of the institution. Before permitting a borrowing facility, the bank should make an evaluation of risk profile of the customer/transaction. (Foucault2000 )This may include

a) Credit evaluation of the borrower's commerce, and macro financial factors.

b) The reason of borrowing and source of repayment.

c) The pathway record / repayment annals of borrower.

d) Assess/evaluate the repayment capability of the borrower.

e) The Proposed periods and ...